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of the· 

United States 

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Fiscal ·Year 1984-Prototype 

COMPILED BY THE 

FINANCIAL MANAGEMENT 

. SERVICE 

DEPAR"fMENT OF THE TREASURY 

. , 
CONTENTS 

Secretarys Letter 3 

Comptroller Generals Letter 5 

Introduction 7 

Financial Highlights 9 

Consolidated Financial Statements 15 

Notes to Financial Statements 21 

Supplemental 1ables 27 

For sale by the Superintendent of Documents, U.S. Government Printing Office 

Washington, D.C. 20402 

t· .. , '' 

, 

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THE SECRETARY OF THE TREASURY 

WASHINGTON 20220 

May 24, 1985 

Statement of the 

Secretary of the Treasury 

The Department of the Treasury is pleased to present 

these consolidated financial statements, an annual effort 

begun nearly a decade ago to apply the principles of business 

accounting to the business of government. Because we recognize the importance of financial management, Treasury is 

committed to improving the governmentwide systems for 

collecting and disclosing the results of federal operations. 

Full disclosure of financial information is critical to the 

effective management of Government's assets and liabilities 

and as a measure of accountability to the electorate. Thi·s 

objective is shared by the Office of Management and Budget 

and the General Accounting Office in our common goal of 

managing the taxpayers' dollar wisely. 

Over the past four years, these agencies have renewed 

Government's commitment to effective financial management. 

By focusing federal attention on standard financial structures, 

new technology, and internal controls, Government has charted 

a new course towards cost effective operations. Toward this 

end, Treasury will complete the development of a fully 

automated financial reporting network that will integrate 

the results of agency operations into comprehensive governmentwide reports. These reports will provide timely and 

meaningful financial information to a broad spectrum of users 

in the public and private sectors. 

Reader reactions and comments on this prototype report 

are welcome. 

~ ~Yc- 1Ja7(;;s A. Baker III . 
COMPTROLLER GENERAL OF THE UNITED STATES 

WASHINGTON O.C. 20548 

May 24, 1985 

STATEMENT OF THE UNITED STATES 

GENERAL ACCOUNTING OFFICE 

The need for sound financial management is one of the most 

critical issues facing the federal government today. With an 

annual spending budget approaching $1 trillion and a current 

budget deficit approximating $200 billion, the federal government must develop modern financial management systems. These 

systems are necessary for efficient and effective management of 

the government's programs and for producing financial reports 

which accurately portray the government's operations and financial condition. 

This consolidated financial report provides useful information about the financial condition and operations of the federal government as a whole that is not available elsewhere~ it 

is supplementary to information contained in the budget documents. The consolidated statements disclose the magnitude of 

the government's assets and future claims on resources not fully 

disclosed in the budget, such as the government's inventories 

and fixed assets as well as its pension and social security liabilities, and public debt. 

, Although this report is a prototype, it demonstrates a goal 

we strongly support--the annual publication of formal audited 

consolidated financial statements of the United States government. Achieving this goal will be a significant milestone towards building strong viable financial management systems that 

will serve the needs of government and the public in the last 

decade of the 20th Century and beyond. 

The General Accounting Office (GAO) is committed to 

achieving this goal. During the past year, we have completed 

three major efforts and are involved in a number of other efforts bearing on this consolidated report. First, we issued a 

two-volume report, Managing the Cost of Government, Building an 

Effective Financial Management Structure. This report identifies the key issues in federal financial management that must be 

dealt with and proposes a conceptual framework for comprehensive 

reform of financial management, of ~hich consolidated reporting 

is a part. Second, we issued revised accounting principles and 

standards federal agencies are to follow. One of the standards 

specifically addresses these consolidated financial statements 

and requires their formal issuance in the future. Third, we 
continued our efforts in monitoring implementation of the Federal Managers' Financial Integrity Act which requires agencies 

to annually assess the quality of their internal controls and 

their accounting systems (which directly impact on the quality 

of these consolidated statements) and to report to the President 

and the Congress. 

Finally, we are participating in.· a p.roject with the Auditor 

General of Canada to determine the needs for federal government 

information by users of such information, focusing on consolidated financial repor~ing. • 

Agency summary level statements,·along with additional 

~~pplemental information, form the basis for pr~paring this consolidated report. Our longer term objective is to audit, these 

consolidated statements and render an opinion on their fair 

.presentation. To achieve this, however, we must first audi.t the 

underlying agency statements; we are beginning pilot audits.at 

selected agencies: ' · · 

We are convinced that the need for such an audit is critical since it would give assurance that the information is reliable as well as adding discipline to the overall financial management systems. Our limited audit work thus far has indicated 

that some of the numbers in these consolidated statements can be 

more accurately stated. A primary example of this is the re- ceivables and related allowances in the consolidated statement 

of financial position. Based on the work we have recently done 

we believe the allowance for losses is substantially understated 

resulting in a significant overstatement of net receivables and 

a significant understatement of the costs of the related programs. Likewise, based on recent work, we believe the estimated 

losses on loan guarantees and insurance is significantly 

understated. 

In spite of its current shortcomings, this consolidated 

report is. critical to improving financial management. Although 

improvements have been and are being made, much still remains to 

be done to formalize these consolidated statements and audit 

them. We at GAO are committed to achieving the goal of audited 

consolidated federal financial statements and we are working 

with the Treasury and the Office of Management and Budget to 

help make it a reality in the near future. 

As with earlier reports of this nature, we have not audited 

the accompanying statements and accordingly, we do not express 

an opinion on them. 

Charles A. Bowsher 

Comptroller General 

of the United States 
INTRODUCTION · 

Since the first set of Consolidated Financial Statements of the United States Government was released in 1976, 

the content of the report has not changed significantly. Several Supplemental Tables have been added and the 

Alternative Statements have been discontinued; however the core of the CFS, the Financial Statements and the Notes 

to Financial Statements, has remained unchanged. - . . 

The CFS has been reformatted to more closely approximate corporate annual reports to stockholders. Graphic 

material based upon data from the CFS has been added to the Financial f:lighligh~s s~ction as well as to the 

Supplemental Tables. Additional analytical material will be included in future reports using data from current and prior 

years. 

, . 

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7 

( 
Financial 

Highlights 
FINANCIAL HIGHLIGHTS 

Major categories of assets 

Assets are resources owned by the Federal Government that are available to pay liabilities or to provide public 

services in the future. The following graph is derived from the Statement of Financial Position and depicts the major 

categories of assets for FY 1984 as a percent of total assets. The Statement of Financial Position on page 16 shows 

the components for each of these major categories. 

Deferred Charges and Other Assets cash and Monetary Reserves 

10.6% 

Property and 

Equipment 

uess accumulated 

depreciation> 

33.3% 

Receivables 

(net of allowances> 

16.1%· 

Inventories 

(at cost> 

32.2% 

Total Assets $937 .3 billion 

11. 
'R'evenues and ·expenses· 

The following graphs show revenues and expenses to~ fiscal years 197 4 thmugh 1984 and total r~ven~es with 

amou·nts.for rnajor sources for the same period. The figures are taken from the Statement of Operati'ons for the.1 f • • ' f ' • • • 

periods for which consolidated statements have been prepared. These amounts have been calculated .on an accrual 

basis and differ from those reported on the cash basis in other reports. , · · · · · · 

Un billions of dollars)------------------, 

1000 

900 

800 

700 

' . '· 600 

500 

200 

100 

•• •• •• .. •• . . 

• 

•• 

.. •····· 

• • • • .. 

• .. 

• •• •• 

' 1 .-:'I l ·. 1) •• • t"'· ,-> . 1\ 

· '•• Deficit 

•• ... ·· 

•• ••• •· . ••• 

- Total Revenues 

••••Total Expenses 

•••• 

1974 75 76 77 78 79 80 81 82 83 84 

,_:--•1 

12 

Un billions'of dollars)----------------, 

800 

700 

600 

- Total Revenues 

- - lndlvldual income Taxes 

--· soclal Insurance Taxes and 

contributions · 

- corporate Income Taxes 

...... Business-type 

Operations 

r,_\ J i l, 't , 

500 

400 

300 

200 

,, 

,, ,,"' .,,,.--------- ,,. _.,, 

.................. ---------·"' 

',,_,, ___ ,,.,,,,. --------· / -----· 

100 ---"' _,,,,,,,.,·-·-·-· ----· ·-·- .... •····· 

..... •·········· .. 

f--..::.-··:,:;.:;•···~_,..-_.-:-:-:: .•.• :: ....::: ... :-=:: ....::... •• --,,:;:__ ___ 

... •··· 

1974 75 . 76 77 78 79 80 81 82 83 84 
Sources and uses of funds 

The graphs below have been ~erived from the Statement of Changes in Financial Conditionfor FY 1984 and 

show the resources provided during the period and the uses to which they were put. This statement is not intenped to 

su_bst_itute for either the Statement of Financial Position or the Statement of Operations; instead, it presents additional 

useful information not included in those reports. . : .. , . .. 

Provision for Accrued Pension, Retirement and Disability Plans 5.0% 

Sale of Property and Equipment 3.0% 

Depreciation 

3.0% 

13.6% · 

12.8% 

Other 

Government 

Operations 

Increase in Liabilities 2.0% 

Cash and Monetary Reserves 

Beginning of Period 

Taxes and 

Other Levies 

54.2% 

sources 

of Funds 

13 

Increase in Deferred Charges and 

Other .Assets 1.2% 

Increase in Inventories 0.7% 

Increase in Receivables 1.3% 

Purchase of Property 

and Equipment 

Spending on Government 

Programs 

88.3% 

uses of Funds 

r 
Consolidated 

Financial 

Statements 

I ~ I! . . ... . . _: . - _, 
United States Government Consolidated Statement 

of Financial Position as of September 30, 1984 and 1983 

(In bllllons) 

Cash and moneiary reserves 

Assets 

(What the Government c;>wns-resources ·that are available 

to pay liabilities or to provide public services in the future) 

• • Operating cash in the Treasury ................................................. . 

International monetary reserves (Note 2) ......................................... . 

Other cash (Note 3) ........................ · ................................... . 

Receivables (net of allowances) 

Accounts receivable ........................................................... . 

Accrued taxes receivable (Note 4) ............................................... . 

Loan's receivable (Note 5) ........ : .................................... · ......... . 

Advances and prepayments ..................................... : .............. . 

Inventories (at cost) (Note 6) 

Goods for sale ................................................................ . 

Work in process .............................................................. . 

Raw materials ................................................................ . 

Materials and supplies for Government use ............ · .......................... . 

Stockpiled materials arid'commodities ........................................... . 

Property and equipment (at cost) 

Land (Note 7) ................................................................ . 

Buildings, structures, and facilities (Note 8) ....................................... . 

Military hardware (Note 9) ....................................................... . 

Equipment (Note 9) ........................................................... . 

Construction in progress ....................................................... . 

Leasehold improvements ....................................................... . 

Other ........................................................................ . 

Accumulated depreciation (Note 10) ............................................. . 

Deferred charges and other assets ............................................... .'. 

Total ....................................................................... . 

The accompanying notes are an integral part of this statement. 

16 

1984 

$30.4 

28.3 

14.1 

72.8 

31.9 

30.2 

229.1 

10.2 

301.4 

,35.6 

2.4 

15.8 

81.1 

--1.li 

151.4 

10.3 

-137.0 

330.2 

88.6 

.37.5 

2.2 

__'._,§J!_ 

611.6 

(299.5) 

312.1 

99.6 

$937.3 

1983 

$37.1 

26.1 

, 16.5 

79.7 

31.9 

24.7 

221.5 

____L§__ 

- 285.9 

44.7 

2.3 

13.9 

67.1 

~ 

143.5 

10.5 

139.6 

292.0 

-82.0 

·37.3 

· 2.3 

-=--1&. 

568.3 

(280.4) 

287.9 

86.1 

$883.1 

,.. .. 
United States Government Consolidated Statement 

of Financial Position as of September 30, 1984 and 1983 .., (In billions) 

Liabilities 

(What the Government owes-liabilities incurred in the 

past that will require cash or other resources in the future) 

Accounts payable ............................................................ . 

Unearned revenue ......... · .................................................. . 

Borrowing from the public (Note 11) ............................................ . 

Accrued pension, retirement, and disability plans (Note 12) 

Military personnel ...................... -.................................... . 

Civilian employees .......................................................... . 

Sociaf security ............................................................. . 

Veterans compensation . : ................................................... . 

Federal employees compensation ............................................. . 

Other pension plans ........................................................ . 

Contingent liabilities for guarantee and insurance programs (Note 13) 

Other liabilities ............................................................... . 

Total .................................................................... . 

Accumulated Position 

Accumulated position beginning of period ....................................... . 

Current period results . , ....................................................... . 

Current noncash provision for social security (Note 14) ........................... . 

Accumulated position end of period ............................................ . 

Total .................................................................... . 

The accompanying notes are an integral part of this statement. 

.. 

0 

17 

1984 

$161.5 

31.8 

1,299.5 

476.1 

542.7 

1,911.8 

221.8 

11.2 

18.2 

3,181.8 

3.5 

58.5 

4,736.6 

(3,465.9) 

(200.1) 

(133.3) 

(3,799.3) 

$937.3 

1983 

$143.5 

' 28.5 

1,130.4 

444.3 

5146 

1,778.4 

223.0 

10.8 

16.4 

2,987.5 

2.4 

56.7 

4,349.0 

(3,070.6) 

(233.6) 

(161.7) 

(3,465.9) 

$883.1 
United States Government Consolidated· Statement of Operations for 

the Years Ended September 30, 1984 and 1983 

(In billions) 

1984 

Revenues 

Levied under the Government's sovereign power 

Individual income taxes ...................................................... . $296.0 

Corporate income taxes ..................................................... . 62.3 

Social insurance taxes and contributions ....................................... . 241.9 

Excise taxes ................................................................ . 37.4 

Estate and gift taxes ........................................................ . 6.0 

Customs duties ............................................................. . 11.4 

Miscellaneous .............................................................. . ___!M 

671.4 

Earned through Government business-type operations 

Sale of goods and services ............................... '................... . 33.5 

Interest .................................................................... . 45.0 

Other ...................................................................... . ___m.. 

_lliJ_ 

Total ..................................................................... . 830.5 

Expenses by function (see also summary of expenses by object and agency) 

Administration of justice ........................................................ . 5.2 

Agriculture ................................................................... . 17.1 

Commerce and housing credit .................................................. . 2.0 

Community and regional development ........................................... . 8.0 

Education, training, employment, and social services .............................. . 25.1 

Energy ....................................................................... . 11.5 

General government ........................................................... . 26.1 

General purpose fiscal assistance ............................................... . 13.4 

General science, space, and technology ......................................... . 7.6 

Health ....................................................................... . 28.1 

Income security (Note 12) 

Military personnel ........................................................... . 48.3 

Civilian employees .......................................................... . 55.8 

Social insurance ......................................... -................... . 14.0 

Veterans compensation ...................................................... . 13.2 

Other ...................................................................... . 87.8 

Interest ...................................................................... . 129.0 

International affairs ............................................................ . 26.3 

National defense .............................................................. . 194.1 

Natural resources and environment ............................................. . ·14.9 

Social security and medicare 

Social security (Note 12) ..................................................... . 186.5 

Medicare ....................................... : ........................... . 79.9 

Transportation ... · ............................................................. . 25.0 

Veterans benefits and services ................................................. . --1.!2. 

Total ..................................................................... . 1,030.6 

Current period results .................................................... . $(200.1) 

/ 

/ 

18 

1983 

$288.9 

39.1 

209.0 

35.3 

6.1 

8.7 

21.6 \ 

608.7 

37.2 

51.0 

63.5 

--1fil.L 

760.4 

4.6 

16.9 

5.1 

5.2 

22.7 

11.4 

17.6 

12.8 

7.0 

25.8 

41.7 

56.7 

16.5 

......_ 37.2 

•86.8 

108.4 

23.8 

173.3 - 14.1 

201.7 

75.9 

19.6 

9.2 

994.0 

$(233.6) 
Summary ~f expenses by object and agency 

1984 1983 

Expenses by object 

Salaries and employee benefits ................................................. . 

Vendor services and supplies ................................................... . 

$96.4 $91.0 

191.8 ·~-~· 211.3 :'::'"' 

Depreciation .................................................................. . 37.8 23.4 

Pensions, health and life insurance .............................................. . 115.1 133.0 

Casualty insurance and indemnities ............................................. . 274.9 181.7 

Grants, subsidies, and contributions ............................................. . 185.6 245.2 

Interest ...................................................................... . 129.0 108.4 

Total ......... · ............................................................ . $1,030.6 $994.0 

Expenses by agency 

Legislative branch . : ........................................................... . $1.3 $1.1 

Judicial branch ............................................................... . .7 .6 

Executive branch 

Office of the President ........................................................ . 17.7 19.9 

Departments 

Agriculture ............................................................... . 51.8 68.3 

Commerce ............................................................... . 2.1 2.6 

Defense ................................................................. . 294.8 253.0 

Education ................................................................ . 13.1 12.4 

Energy ................................................................... . 13.8 14.1 

Health and Human Services ............... ; ................................ . 241.1 225.7 

Housing ar:,d Urban Development ........................................... . 23.9 27.5 

Interior ................................................................... . 10.1 10.4 

Justice ................................................................... . 3.4 3.8 

Labor .................................................................... . 20.4 31.8 

State .................................................................... . 2.3 2.4 

Transportation ....... · ..................................................... . 37.0 32.1 

Treasury: Interest ......................................................... . 129.0 108.4 

Other ........................................................... . 7.5 8.3 

Independent agencies .......... , ............................................ . 160.6 171.6 

Total ..................................................................... . $1,030.6 $994.0 

The accompanying notes are an integral part of this statement. 

19 
United States Government Consolidated Statement 

of Changes in Financial Position 

for the Years Ended September 30, 1984 and 1983 

(In billions) 

Cash and monetary reserves beginning of period 

Sources of funds: 

Taxes and other levies ....................................................... . 

Other Government operations ............................................... . 

Net i_ncrease in borrowing ................................................... . 

Depreciation ............................................................... . 

Provision for accrued pension, retirement, and disability plans ................... . 

Sale of property and equipment ................................... '. ......... . 

Increase in liabilities ........................................................ . 

Total sources of funds 

Uses of funds: 

Spending on Government programs .......................................... . 

Purchase of property and equipment ......................................... . 

Increase in receivables ..................................................... . 

Increase in inventories ...................................................... . 

Increase in deferred charges and other assets ................................. . 

Total uses of funds ..................................................... . 

Cash and monetary reserves end of period ..................................... . 

T_he accompanying notes are an integral part of this statement. 

20 .... 

1984 

$79.7 

671.4 

159.1 

169.1 

37.8 

60.9 

37.6 

~ 

1,239.9 

1,030.6 

99.6 

15.5 

8.0 

---1M 

1,167.1 

$72.8 

Vt 

;.r 't:· ""' .. ~--

1983 

$71.2 

608.7 

151.7 

211.6 

23.4 

79.9 

22.1 

~ 

1,198.8 

994.0 

70.1 

18.6 

19.0 

---1L1 

1...!llJ. 

$79.7 
I 

,-, 

Notes to 

Financial Statements 
Notes to Financial Statements 

1. Summary of general accounting policies 

Principal financial statements.-These consist of a statement of financial position, a statement of operations, 

and a statement of changes in financial position. Because of their developmental nature, only the most significant 

changes in format are disclosed in the Notes. 

Principles of consolidation.-The statements include the accounts of all significant agencies and funds 

· included in the budget of tl;le U.S. Government. Agencies such as the U.S. Postal Service and the Federal Financing 

Bank, classified as off-budget (not included in calculating the budget surplus or deficit), have also been included in the 

statements because they are wholly owned and are clearly within the scope of Government operations. Governmentsponsored enterprises such as the Federal land banks are excluded because they are privately owned. lntragovernmental transactions were eliminated in consolidation. 

Fiscal year.-The fiscal year of the U.S. Government ends on September 30. 

Reclassification and adjustment-For comparability, certain fiscal 1983 data are reclassified where appropriate to conform to the financial statement presentation for fiscal 1984. 

2. International monetary reserves 

This category, as of September 30, 1984, comprises the following items: $11.1 billion in gold, recorded at 

$42.22 per ounce, the statutory price at which gold is monetized by the issuance. of gold certificates to the Federal 

Reserve System; $5.6 billion of special drawing rights, an international reserve asset; and $11.6 billion representing 

the U.S. reserve position in the International Monetary Fund. 

3. Other cash 

This category, as of September 30, 1984, comprises the following items: Other U.S. Treasury monetary assets, 

$0.9 billion; accountability for cash and other assets held outside the Treasury by disbursing, collecting and other fiscal 

officers, $6.5 billion; convertible foreign currencies, at market value, $6.0 billion, and balances of nonpurchased 

foreign currencies, $0. 7 billion. The amounts as of September 30, 1983, were $1.6 billion, $7.0 billion, $6.9 billion, and 

$1.0 billion, respectively. 

4. Accrued taxes receivable 

The September 30, 1984, total for taxes receivable. represents $26.0 billion (net) for delinquent taxes and $4.2 

billion of accrued corporate taxes. 

5. Loans receivable 

Outstanding loans and allowances have been recorded as reported by the various lending agencies. The 

• · allowances for losses are presumed to be understated and they are under study. Interest rates and loan repayment 

terms vary considerably for outstanding loans, with rates ranging up to 17.86 percent and terms from as short as 5 

days to well over 35 years. 

6. Inventories 

Inventories include nondepreciable personal property and are stated at cost. The September 30, 1984, total for 

inventories comprises $109.6 billion for the Department of Defense and $41.8 billion for other agencies. The amounts 

as of September 30, 1983, were $101.9 billion and $41.6 billion, respectively. The inventory accounts do not include 

the weapons stockpile since the extent of this inventory is classified information. 

7. Land 

Land is valued at the cost paid by the Government. The cost of land acquired through donation, exchange, 

bequest, forfeiture, or judicial process is estimated by the General Services Administration at amounts the Government would have paid if purchased at the date of acquisition. Pending study of valuation methods, the Outer 

23 
Continental Shelf and other offshore land, and the 670 million acres of public domain land, have not been included. In 

1972 a committee of the House of Representatives estimated the value of public domain land (92 percent of the total 

onshore acreage owned by the Federal Government) to be $29.9 billion . 

...... 

8. Buildings, structures, and facilities 

This category consists of all real property owned by the Federal Government except land. The total reflects the 

acquisition cost of buildings and the cost of acquiring or erecting dams, utility systems, monuments, roads, and 

bridges. The September 30, 1984; total represents $58.5 billion for the· Department of Defense and $78.5 billion for 

other agencies. The amounts as of September 30, 1983, were $56.5 billion and $83.1 billion, respectively. 

9. Depreciable personal property~ 

Military hardware and equipment are rec;;orded at acquisition cost and include only depreciable property 

. currently in use or in usable condition. The majoA;omponents of each category are summarized as follows: 

. '\ 1984 1983 

) \ 

Military hardware 

[In billions] 

Aircraft and related equipment ................. . $140.0 $129.1 

Ships and service craft ....... _- ............... . 89.8 79.1 

Combat and tactical vehicles .................. . 67.9 55.6 

Missiles and related equipment .. · .............. . 

Other ................................. \· .... . 27.0 5 23.1 5.6 5.1 --

Total ............................... .' ..... · $330 'i).:.. ::::::::::::::: $292.0 

Equipment 

Dep<'.3rtment of Defense 

Industrial plant equipment ................... . $20.8 $20.2 

Communications and electronics ............. . 3.7 • 3.1 

Other ..................................... . 29.8 --

26.5 

54.3 49.8 

Other agencies ............ : ................. . 34.3 32.2 --

Total $88.6 $82.0 -- --

10. Accumulat~d depreciation 

Most Government agencies do not calculate depreciation on property and equipment; therefore, accumulated 

depreciation is estimated on a straightline basis, from available information. The useful lives applied· to each 

classification of asset are as follows: Buildings, structures,-and facilities-50 years; ships and service craft-30 years; 

industrial plant equipment-20 years; all other depreciable as_sets-1 O years. 

11. Borrowing from the public 

As of September 30, 1984, the gross amount of Federal debt outstanding net of unamortized premiums and 

discounts was $1,035.8 billion. This amount was reduced by $263.7 billion for intragovernmental holdings. The 

amou_nt,of Federal deb.t outstanding net of unamortized premiums and discounts, as of September 30, 1983, was 

$1,371.'2 billion. This amount was reduced by $240.8 billion for intragovernmental holdings. As of September 30, 

1984, foreign and international investors held approximately$175,5 billion of the debt outstanding with the public. The 

amount as of September 30, 1983, was $160.0 billion. For addltional information on borrowing from'the public, see the 

Federal Debt Maturity table in the supplemental section (page 37 ). 

24 

·? 
12. Accrued pension, retirement, and disability plans 

• 

The accounting for accrued pension, retirement, and disability plans is subject to several different assumptions, 

definitions, and methods of calculation. Each of the major plans is summarized below. 

Military personnel and civilian employees: The liabilities under these tw9,13ension plans represent a major 

portion of the total unfunded liability which is to be reported under Public Law 95-595. In prior years, the accrued 

pension liabilities for September 30 represented the actuarial present value of accumulated plan benefits and were 

calculated in accordance with instructions developed jointly by the General Accounting Office and the Office of 

Management and Budget under the provisions of Public Law 95-595. 

The actuarial liabilities as of September 30, 1984, were not available for either plan. The liabilities have been 

estimated by calculating a simple average of the chang~ in reported liability for each of fiscal years 1981, 1982, and 

1983. 

Social security: Based on the present value of the projected excess of benefits over contributions for present 

participants for the next 75 years. 

It has not yet been determined whether the requirements for Federal pension plans, established as a result of 

Public Law 95-595, should be applied to the Social Security System due to the uniqueness of the actuarial cost 

methods used for measuring benefits under the system. 

Veterans compensation: Represents the present value of projected annual benefit payments. 

F~deral employees compensation: Represents estimated future costs for approved Federal Employees 

Compensation Act cases. . 

Other annual pension reports received from plans covered by Public Law 95-595 are reported in the same 

manner as military personnel and civilian employees described above. 

' 13. Contingent liabilities for guarantee and insurance programs 

A number of agencies do not make any provision for estimated losses on loan guarantees and insurance, while 

others do not provide reasonable estimates of losses. · . . .. .. , 

For additional information on estimated lo~ses for guarantee and insurance programs, ·se'e· the Commitments 

and Contingencies of the U.S. Government table in the supplemental section (page 35). · 

14. Current noncash provision for social security 

The noncash provision for social security represents changes in the social security accrued liability between 

periods based on a 30-year amortization of the actuarial deficit. Accounting methods for this provision require 

additional study. 

The noncash amount is not included in the Statement of Operations because a substantial but indeterminate 

portion is not applicable to the current period. The Statement of Operations does include cash benefit payments. The 

current noncash provision for social security is $133.3 billion in 1984. 

15. Contingencies 

Several Government agencies insure businesses and individuals against various types of risks. The amount of 

insurance coverage in force, representing the .maximum risk exposure to the Government, is $2,636.8 billion as of 

September 30, 1984. · , 

The Government also guarantees loans by non-Government enterprises to businesses and individuals. These 

guarantees become liabilities of the Government only when it is required to honor its guarantees. Loan guarantees in 

force at September 30, 1984, are $615.0 billion. For further information on contingencies, see the Commitments arid 

Contingencies of the U.S. Government table in the supplemental section (page 35). 

25 
16. Open-ended programs and fixed costs 

. The Government commits itself to provide services by passing laws that make spending mandatory. Since a 

significant amount of future spending is fixed by law, it is very probable that the Government will pay for these programs 

in future years. Listed below are the programs for fiscal 1984 that can be terminated only if the laws are changed. 

Payments for individuals 

Social security and railroad retirement .................... . 

Federal employees retirement and insurance .............. . 

Unemployment assistance ............................. : . 

Assistance to students ................................. . 

Food and nutrition assistance ........................... . 

All other .· ............................................. . 

Medicare and Medicaid ................................. . 

Public-assistance-related programs ....................... . 

'Net interest ........................................ .' :· ... ~ · 

General revenue sharing ................................. . 

Other open-ended programs and fixed costs ................ . 

Total ............................................. . 

26 

1984 

[In billions] 

$179.3 

49.0 

16.9 

4.8 

3.6 

2.9 

79.9 

21.0 

_ :;,.., 357.4 

111 .1 

4.6 

5.7 

$478.8 
Supplemental T;,bles 

' 

:i 

., 
FLOW OF FUNDS PROJECTIONS 

Total cash receipts amounted to $718.8 billion in FY 1984, an increase of $82.5.billion from FY 1983. The 

graphs below ·depict the actual and projected FY 1985-88 cash receipts and outlays and the components of cash 

receipts for FY 1984. 

Major Components of cash Receipts 

fOr FY 1984 

All Other Receipts 

Social Insurance Taxes 

and contributions 

$241.6 

Individual Taxes 

$296.2 

Corporation Taxes 

Total cash Receipts $718.8 bllllon 

Actual and Projected cash Receipts and outlays . FY 1984-88 

1,100 

1,000 

900 

800 

700 

600 

500 

400 

300 

200 

100 

--- --

1984 

--- --- ---

198S<estl 

--- --- ---- ---

--- --- ---

- cash outlays 

••• cash Receipts 

1986<estl 1987<estl 1988<estl 

The table which follows shows the amount of actual FY 1984 and projected FY 1985-88 budget cash receipts 

and outlays. 

• The data presented here differs from the consolidated financial statements in that it is on the cash basis 

instead of the accrual basis, and certain receipts are treated as requctions of outlays, according to 

conventions adopted for budgeting purposes . 

.. • The projections are not forecasts of future receipts and outlays, nor are they recommendations for policysetting purposes. They simply reflect what may happen to cash basis revenues and expenditures considering certain basic assumptions reflected in the budget. 

• The receipts projections are consistent with the continuation of current tax laws as modified in the 1986 

Budget. 

• Outlay estimates indicate the degree to which resources would be committed by the continuation of existing 

and currently proposed programs through FY 1988. 

29 
'.l . 

Flow of F4nds Projectio~s 

for the Years Ended 

September 30, 1984-88 

(In billions) 

Cash Receipts 

Taxes 

Individual ............................................. . 

Corporation ........................................... . 

Social insurance taxes and contributions 

Employment taxes and contributions ..................... . 

Unemployment insurance ............................... . 

Contributions for other insurance and retirement ........... . 

Excise taxes ........................... · ........ · ........... . 

Estate and gift taxes ..................................... . 

Customs duties .......................................... . 

Miscellaneous ........................................... . 

Rents and royalties ....................................... . 

Total cash receipts ................................... . 

Cash outlays by function 

Administration of justice ................................... . 

Agriculture .............................................. . 

Allowances for civilian pay raises and contingencies .......... . 

Commerce and housing credit .............................. . 

Community and regional development ...................... . 

Education, training, employment, and social services ......... . 

Energy .............................. ·.· .................. . 

General government ....................................... . 

General science, space, and technology .......... · .......... . 

General purpose fiscal assistance .......................... . 

Health .................................................. . 

Income security .......................................... . 

Interest ................................................. . 

International affairs ....................................... . 

National defense ......................................... . 

Natural resources and environment ........................ . 

Social security and medicare .............................. . 

Transportation ........................................... . 

Veterans benefits and services .............................. . 

Total cash outlays .................................... . 

Total budget surplus (deficit) ........................... . 

Deficit, off-budget Federal ent.ities .................... . 

Total surplus (deficit) 

1984 

Actual 

$296.2 

5ey.9 

211.9 

25.1 

4.6 

37.4 

6.0 

11.4 

62.6 

___§2_ 

___mu!_ 

5.7 

12.2 

5.2 

7.3 

27.6 

2.5 

5.1 

8.3 

6.8 

30.4 

112.6 

131.4 

13.0 

227.4 

12.6 

235.8 

24.6 

~ 

(175.3) 

~ 

. · $(185.3) 

Source: Budget of the Urit.ed States Government, Fiscal Year 1986. 

30 

1985 1986 . 1987 1988 

----'-----Estimate _____ _ 

$329':7 

66.4 

238.1 

25.6 

4.7 

37.0 

5.6 

11.8 

70.5 

~ 

794.7 .---

6.7 

18.9 

1 .1 

2.8 

7.9 

30.4 

3.0 

5.8 

8.8 

6.6 

33.9 

127.2 

155.9 

17.3 

253.8 

13.0 

257.4 

27.0 

~-

(209.7) 

~ ' 

$(222.2)' 

$358.9 

74.1 

259.3 

25.3 

4.8 

35.0 

5.4 

12.3 

76.7 

8.5 · 

860.3 

6.6 

13.7 

.4 

2.9 

6.8 

29.3 

1.9 

4.8 

9.4 

2.8 

34.9 

115.8 

171.7 

18.1 

285.7 

11.9 

269.4 

25.9 

____g§.&_ 

(178.5) 

~ 

$(180.0) 

$392.5 

87.5 

281.3 

23.2 

5.0 

35.0 

5.0 

12.7 

85.0 

7.3· 

934.5 

6.6 

12.2 

.7 

6.0 

27.8 

2.3 

4.9 

9.5 

1.7 

35.7 

119.0 

187.0 

17.6 

321.2 

10.9 

288.1 

24.6 

~ 

(168.2) 

, 3.2 

$(165.0) 

$433.6 

99.0 

318.9 

22.5 

5.1 

33.6 

4.7 

13.4 

93.1 

4.8 

1,028.7 

6.7 

11.4 

1.8 

(.6) 

5.5 

27.6 

2.1 

5.0 

9.7 

1.7 

37.3 

123.4 

198.5 

16.8 

358.4 

10.8 

309.4 

24.2 

27.7 

(148.7) 

1.8 

$(146.9) 
COMPARATIVE SUMMARY OF SELECTED FINANCIAL DATA 

Restated for General Price-Level Changes 

· The following graphs which were developed from the Statement of Financial Position and Statement of 

Operations present a comparative summary of selecteci'financial data. 

Accumulated Position - Actual and Restated · for ceneral Price-Level Changes 

FY 1980-84 

<in billions of dollars)------------~ 

[ill] Accumulated Position 

[ID] Accumulated Position Restated 

-2,000 

· -3,000 

-4,000'--------------------' 

1980 1981 1982 1983 1984 

Operating Results - Actual and Restated for 

ceneral Price-Level Changes 

FY 1980·84 

<in billions of dollars)------------~ 

200 

100 

-100 

-200 

-300 !ffiTI. Cu~~ent Period Results 

B current Period Results Restated 

-400'--------------------' 

1980 1981 1982 1983 1984 

Accounting for inflation by restating historical values to account for changes in the general purchasing power of 

the dollar provides comparability between years since all dollars are equivalent to the current level of purchasing 

power. This restatement generally follows the Financial Accounting Standards Board Statement No. 33, "Financial 

Reporting and Changing Prices." •. I' . • 

The tables which follow show the Financial Statements of the U.S. Government restated for general price-level 

changes and a comparative summary of selected financial data. 

Derived from the Consumer Price Index for All Urban Consumers (CPI-U), the average conversion factors used 

1 in the tables are: fiscal 1984-1.025 and fiscal 1983-1 .011 . Monetary assets and liabilities as of September 30, 

\ • 1984, are not restated because they already represent dollars of current general purchasing ,power. 

\ 

/, 

' 

·• 

\ 

31 
Financial' Statements of the U.S. Government 

Restated for General Price-Level Changes 

(Restated to September 30, 1984, Dollars) 

(In bllllons) . 

Financial position 

Assets 

Cash and monetary re~erves ........................................ . 

Receivables (net of allowances) ................................... : .. : . 

Inventories (at cost) ................................................ . 

Property and equipment (net of accumulated depreciation) .............. . 

Deferred charges and other assets ................................... . 

Total assets ........ : .................. .' ......................... . 

Liabilities . 

Accounts payable .................................................. . 

Unearned revenue ................................................. . 

Borrowing from the public ........................................... . 

Accrued pension, retirement, and disability plans ...................... . 

Contingent liabilities for guarantee and insurance programs ............. . 

Other liabilities ..................................................... . 

' Total liabilities .......... · .......................................... . 

Accumulated position 

Accumulated position beginning of period ............................. . 

Current period results ............................................... . 

Current noncash provision for social security .......................... . 

Accumulated position end of period ................................... · 

Total liabilities and accumulated position ............................ . 

Operating results 

Revenues 

Taxes and duties ................................................... . 

'Business-type operations ........................................... . 

·. Total revenues ................................................... . 

Expenses 

Administration of justice ............................................. . 

Agriculture ........................ : ................................ . 

Commerce and housing credit ....................................... . 

Community and regional development ................................ ·. 

Education, training, employment, and social services ................... . 

Energy ............................................................ . 

General government ................................................ . 

General purpose fiscal assistance .................................... . 

General science, space, and technology .............................. . 

Health ......................................................... : . . . 

Income security .................................................... . 

Interest ..................................................... • • • ... . 

International affairs ................................................. . 

National defense ................................................... . 

Natural resources and environment .................................. . 

Social security and medicare ........................................ . 

Transportation ..................................................... . 

Veterans benefits and services ...................................... . 

Total expenses ........... : ....................................... . 

General price-level gain ............................................... . 

Current period results ............................................. . 

Comparative summary of selected financial data 

Financial position 

Total assets ............................ . 

Total liabilities ........................... . 

Accumulated position end of period ..... . 

Operating results 

Total revenues .......................... . 

Total expenses .......................... . 

General price-level gain .................. . 

Current period results .................. . 

1984 

Sept. 30 

$1,018.2 

4,744.0 

$(3,725.8) 

$843.8 

1,047.1 

168.8 

$(34.5) 

32 

1983 

Sept. 30 

$1,017.4 

4,536.7 

$(3,519.3) 

$803.3 

1,050.3 

101.8 

$(145.2) 

1982 

1984 

Sept. 30 

$72.8 

301.4 

160.2 

371.6 

112.2 

$1,018.2 

$161.5 

37.4 

1,299.5 

3,181.8 

5.3 

58.5 

4,744.0 

(3,212.7) 

(372.1) 

(141.0) 

(3,725.8) 

$1,018.2 

$682.1 

161.7 

843.8 

5.3 

17.4 

2.1 

8.1 

25.5 

11.7 

26.5 

13.6 

7.7 

28.5 

222.6 

131.1 

26.7 

197.2 

15.1 

270.7 

25.4 

11.9 

1,047.1 

168.8 

$(34.5) 

Sept. 30 

$986.7 

4,175.7 

$(3,189.0) 

$852.3 

992.9 

200.7 

$60.1 

1981 

Sept. 30 

$893.9 

3,936.9 

$(3,043.0) 

$800.5 

889.6 

348.3 

$259.2 

1983 

Sept. 30 

$83.0 

• ',297.6 

157.2 

376.4 

103.2 ---

· $1,017.4 

$149.4 

37.1 

1,176.6 

3,110.0 

4.5 

59.0 

4,536.7 

(3,197.2) 

(145.2) 

(176.9) 

(3,519.3) 

$1,017.4 

$643.1 

160.2 

803.3 

4.9 

17.8 

5.4 

5.5 

23.9 

12.1 

18.6 

13.5 

7.4 

27.3 

252.4 

114.5 

25.2 

183.1 

14.9 

293.4 

20.7 

9.7 

1,050.3 

- 101.8 

. $(145.2) · 

1980 

Sept. 30 

$867.3 

3,976.3 

$(3,109.0) 

$786.3 

976.8 

405.7 

$215.2 
__, I 

EFFECT OF INDIVIDUAL AND CORPORATE TAX BENEFITS ON FEDERAL REVENUES 

Tho following table is designed to show tho rovonuo locsoc attributable to tax law provioiono that allow special 

exclusions, exemptions, or deductions from gross income or provide special credits, tax rates, or deferrals. The 

schedule shows the approximate cost of tax benefits. 

It should be noted that the effect on revenues of adding or deleting a particular tax benefit would not be the same 

as the dollar amount currently associated with the benefit. Consequently, it is not possible to say what the effects of 

increasing or decreasing selected benefits would be without considering a number of variables. 

Some minor distortions may have occurred since data presented have been condensed for purposes of this 

report. 

Effect of Individual and Corporate Tax Benefits on Federal Revenues 

for Tax Years 1984 and 1983 

(In billions) 

Estimated amount 

Income exclusion 

Capital gains at death .................................................................. . 

Disability and retirement benefits (social security and private) ............................... . 

Education allowances (scholarships and GI benefits) ....................................... . 

Foreign earnings and investment incentives (income earned abroad) ......................... . 

Interest and dividends (State and local bonds and debt, and life insurance) ................... . 

Medical care and insurance (employer premiums paid) ..................................... . 

Payroll benefits and allowances (group life, accident,_ and unemploymen_!)_ ..................... . 

Other (age 55 or over credit on home sales) .............................................. . 

Income deferrals 

Interest on U.S. savings bonds .......................................................... . 

Real estate (home sales) ............................................................... . 

Foreign earnings (domestic international sales corporations) ................................ . 

Other deferrals 

Taxes (shipping companies) ........... ,. ............................... · .................. . 

Deductions and credit 

Agriculture related (capital outlays and gains on certain income) .................... · ......... . 

Contributions (charitable and political) .................................................... . 

Earned income ........................................................................ . 

Employee stock ownership plans (funded through investment and tax credits) ................. . 

Excess bad debt reserves (financial institutions) ........................................... . 

Exemptions (credit unions) ............................................................... . 

Foreign earnings (corporations doing business in U.S. possessions) ......................... . 

Interest (mortgage and consumer) ....................................................... . 

Investments (commercial capital gains, credits, other investment incentives, construction period 

interest, and expensing developmental costs) ............................................ . 

Medic~! ............................................................................... . 

Mining and timber (capital gains treatment of royalties and certain income) ................... . 

Old-age, disability, and other personal exemptions ......................................... . 

Other (deductions of motor carrier rights, certain adoption expenses, and energy credit for 

intercity buses) ...................................................................... . 

Property damages and losses (casualty losses) ........................................... . 

State and local property tax and other taxes .............................................. . 

. Work incentives (employment credits under work ·programs) and dependent care .............. . 

Accelerated depreciation (rental housing, buildings other than rental housing, and machinery and 

· equipment) ........................................... : .............................. . 

Source: Budget of the United ·states Government, Fiscal Years 1986 and 1985. 

* Less than $100 million. 

33 

of revenue loss 

1984 1983 

$3.9 $3.5 

82.8 '•84.7 

1.2 1.1 

1.3 1.3 

19.9 22.1 

19.1 , 15.3 

4.8 ~ . ' ' 4.7 

5.7 · 5:1 

.7 .6 

1.7 1.3 

1.2 1.5 

1.2 1.2 

13.2 12.4 

6.5 3.5 

1.4 1.3 

.6 .4 

.2 .1 

1.3 1.4 

35.4 30.0 

49.5 42.0 

3.2 3.4 

3.7 5.7 

3.8 3.7 

3.4 3.5 

.4 .5 

29.7 26.1 

2.2 2.1 

21.1 11.9 
', ' 

COMMITMENTS AND CONTINGENCIES 

Total commitments amounted to $514.8 ·billion in FY 1984, an'increase of $80.3 billion from FY 1983. Total 

contingencies amounted to $3,316.2 billion in FY 1984, an increase of $368.1 billion from FY 1983. The graphs below 

show the percentage distribution of 1984 commitments and contingencies by source category. 

unadjudicated Claims 1.5% 

Other contingencies 0.5% 

Insurance in Force 

79.5% 

contingent Liablllties 

<Maximum Risk Exposure> 

Total $3,316.2 bllllon 

Long-Term Contracts 

Undelivered Orders 

94.3% 

commitments 

Total $514.8 bllllon 

\._ 

The table that follows is designed to show two basic types of financial information. These are the maximum 

potential liabilities (commitments) and the anticipated liabilities (contingencies) which it is reasonably certain, based. 

on experience and other factors, will occur. The anticipated liabilities are the equivalent to allowance for ·losses. : 

' . ' 

As used in commercial accounting, a commitment represents an obligation to pay for goods or services upon 

delivery under a contractual arrangement. Commitments shown in the table are represented by long-term contracts 

for which appropriations have not yet been provided by the Congress, and undelivered orders representing obligations 

of currently available appropriations. 

A contingency represents a possible exposure to a liability depending upon the outcome of uncertain future 

events or circumstances. Contingencies are stated in terms of the maximum risk exposure without regard to existing 

contingent o.ccets which would be available to offaot potential losses. Tho ratio of loccos incurred to premiums written, 

represents the probability of incurring those losses. "Contingent liabilities" supports the balance sheet liability 

'.'contingent liabilities for guarantee and insurance programs" and represents the anticipated liability.· 

34 
Commitments 

Commitments and Contingencies 

of the U.S. Government 

. as of September 30, 1984 

(In billions) 

Long-term contracts 

GSA building construction ............................................... · ........... · ...... . 

Tennessee Valley Authority ............................................................... . 

Other .................................................................. .' ............... . 

Subtotal ........ : . .................................................................... . 

Undelivered orders 

Legislative branch ....................................................................... . 

Judicial branch ......................................................................... . 

Executive Office of the President .......................................................... . 

Funds appropriated to the President ....................................................... . 

Defense ............................................................. : ................. . 

Education .............................................................................. . 

Health and Human Services .................................. : ........................... . 

Housing and Urban Development ..................... · .................................... . 

Transportation .......................................................................... . 

Environmental Protection Agency ................ : ........... , ............................ . 

Other agencies ......................................................................... . 

Off-budget agencies ...................................................................... . 

Subtotal .............................................................................. . 

Total commitments ........................ : ..... ' ........... ' ................. ' .. ' ... . 

Contingencies 

Government loan and credit guarantees 

Housing .................................... . 

Export-Import Bank of the United States ....... . 

Business loan and investment fund ............ . 

Farm ownership ...... · ......................... . 

Rural development ....... : .................. . 

Shipbuilding and operations .................. . 

Transportation .............................. . 

Veterans benefits ............................ . 

Education .................................. . 

Other ...................................... . 

Subtotal .................................. . 

'Insurance in force 

Federal Deposit Insurance Corp. . .......... : ... . 

Federal Savings.and Loan Insurance Corp, .....•. 

Federal EmergenciManagement Agency ...... . 

Nuclear Regulatory Commission .............. . 

National Credit Union Administration ........ · .... · 

Veterans Administration ............. ,- ......... . 

Department of Transportation ................. . 

Other ..................................... · .. 

Subtotal .................................. . 

Unadjudicated claims 

· Transportation .... • .......................... . 

. •Other ................. · ....................... . 

Subtotal .................................... . 

Other contingencies 

Veterans readjustment benefits ............... . 

Other ................ · ..... :· ............. : .. ·.·· 

Subtotal .................................. . 

Total contingencies ...................... . 

Total contingent liabilities ................. . 

* Less than $100 million. 

Contingent liability 

(Maximum risk 

exposure) 

$212.3 

6.5 

10.6 

26.8 

44.6 

7.7 

1.7 

57.6 

37.4 

209.8 

615.0 

1,322.4 

751.2 

147.2 

68.0 

75.1 

29.0 

222.7 

21.2 

2,636.8 

6.5 · 

42.1 

48.6 

5:2 

io.6 

15.8 

$3,316.2 ) 

35 

Ratio of losses 

incurred to 

premiums written 

,.0.09% 

2.53 

.91 

.38 

.01 

. 13 

•' .05 

.43 

'3.22 

· .01 

Amounts 

outstanding 

$3.0 

7.8 

_____1!L§ 

29.3 

.2 

31.9 

88.5 

9.2 

22.6 

248.1 

32.4 

10.4 

37.0 

5.2 

485.5· 

$514.8 

Contingent 

liabilities 

$0.2 

.3 

.2 

.2 

.9 

1.8 . 

.1 

.7 

·. 2.6 
FEDERAL DEBT MATURITY 

Total net borrowing from the public amounted to $1,299.5 billion in FY 1984, an increase of $169.1 billion from 

FY 1983. This chart has been ·presented to graphically show··the increase· in net" borrowing from 'the public. 

Net Borrowing from the Public with Interest Expense for 1974-84 un billions of dollars) · 1.300~----------~------------

1,200 

1,100 

1,000 

900 

800 

700 I 

600 

500 

200 

100 

Net Borrowing from the Public 

Interest Expense 

1·974 .......... ,. 21.5 

1975 ............ 32.7 

1976 ............ 45.2 

1977 · ............ 41.9 

1978 ............ 39.2 

1979 ............ 48.3 

1980 ............ 59.9 

1981 ............ 78.4 

1982 ............ 97.7 

· 1983 ...... ·.· ... 108.4 

1984 ........... 129.0 

1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 

The Federal Debt Maturity schedule which follows reflects information on the borrowing of the Federal 

Government needed to finance the Government's operations. 

Information on the debt is provided by type of debt instrument, average interest rate charged for each type, and 

maturity. This schedule directly supports the balance sheet caption, "Borrowing from the public," which is shown net of 

intragovernmental holdings and unamortized premium-or discount. lntragovernmental holdings represent that portion· 

of the total Federal debt held by Federal entities, including the major trust funds. · 

The percentage distribution of 1984 net borrowing from the public by source category is graphically depicted 

below. 

Bills 

26.6% 

\. 

Bonds 

50.8% 

Total Marketable 

89.2% 

36: 

Nonmarketable 

Notes 

11.8% 

J 

I 

9 .. 6% 

I 

0th er 

1.2% 
Federal Debt Maturity 

as of September 30, 1984 

(In bllllons) 

Average Maturity 

Interest 

Total rate Within 1-5 5-10 10-20 20 years 

debt (percent) 1 year years years years or longer Various 

Marketable 

Bills ............................... $345.6 11.069 $345.6 

Notes .............................. 660.5 11.647 166.8 $399.8 $93.9 

Bonds ............................ •. 152.8, 10.746 .8 2.5 31.8 $117.7 

1,158.9 11.362. 513.2 402.3 125.7 117.7 

Non marketable 

Foreign government series ·••'•• ...... 8.9 9.562 5.3 3.6 

Government account series '. .......... 1.0 6.510 .7 .3 

LJ.S. savings bonds ........ , ......... 72.8 7.150 .6 6.0 10.1 $56.1 

Other .............................. 41.8 8.749 41.8 

124.5 7.583 6.6 ~ -1.QJ. 97.9 

Other 

Agency securities ................... 3.4 6.198 1.4 1.8 .2 

Other ,. .............. •'• .............. ___RZ $12.0 .7 

__j§J_ 6.198 --1.:.1 ---1.& _!bQ_ __ .9 

Net borrowing from the public 

Current period .................. ' ... 1,299.5 519.8 413.6 137.6 117.7 12.0 98.8 

Prior period ......................... 1,130.4 464.6 377.2 107.4 50.4 40.4 90.4 

Net increase ....... : .................. $169.1 $55.2 $36.4 $30.2 $67.3 $(28.4) $8.4 

*Less than $1.00 mi!lion. 

--., 

37 
ADDITIONS TO NON-FEDERAL ECONOMIC RESOURCES 

The following graph indicates the ways in which the Government uses its resources to add to the physical and 

human resources of the Nation without acquiring physical assets. 

~-

•'-,,.,, • I • ~ 

All Other $2.6 -----, 

Science and Engineering 

Education -

Income support 

$13.4 

,,, V 

Additions to 

State, Local and 

Private Assets 

$22.3 

Conservation 

Total $63.2 billion 

. \ 

The table which follows shows the amounts of these expenditures. S9me 9f these investment-type expenditures, while not adding to the Federal assets, add to the assets of State and local governments or private institutions, 

and all enhance the future productivity of the Nation. 

While this table does not provide a precise measure of the difference between capital and current items, it does 

indicate a useful general magnitude. 

Additions to State, local, and private assets include construction grants for highways, hospitals, and airports, 

subsidies to the merchant fleet, and conservation projects, which increase the value of private farmla-nd and water 

resources. Other developmental expenditures reflect current Federal expenditures and grants which will benefit the 

Nation in future years by increasing productivity or well-being. These include research and development costs and 

education and training. 

•38 
\ 

Additions to Non-Federal 

Economic Resources 

for the Years Ended September 30, 1984-86 

(In bllllons). 

,.____~ 

Add;t;on, to State, local,'"' p,lwte .,) 

r---- Co~iy'and•regional·developmeiit ....................................... . 

Environment .............................................................. . 

'Transportation 

Highways and mass transit ................................. : .............. . 

Rail and air ............ · .................................................. . 

Other .............................................................. ." ..... . 

Total additions ........................................................... . 

~er.developmental-;,;penditur{s · . · 

()/AQricultare-,.. .•.•.•.•. -.~ .................. : ............... : ........... · · · 

Conservation .............................................................. . 

v Economic development ............ : ........................................ . 

Education ................................................................ . 

-/Education-il')come support .................................................. . 

Environment ................................................................ . 

Health ....................... , ........ : ." .................................... . 

Science and engine~ring ............................... , .. : . .......... : ..... . ~] .. . . 

{ t;:~;~r-t~'.i~~: : : : : : : :- : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : ·: : : : : : : : : : : : : : : : : : ~ : : : 

. f Total developmental expenditures : ...... , ... : ........... : ..................... . 

( Total investment outlays ................................................ . 

Source: Budget of the· United States Government, Fiscal Year 1986. 

\ .. 

39 

/ 

1984 1985 1986 

Actual __ Estimate __ 

$4.9 $5.1 $4.8 

2.9 3.1 2.8 

13.5 16.1 16.4 

.7 .8 .8 

__ .3 .4 ~ 

22.3 25.5 25.1 

.9 .9 .9 

5.4 3.3 3.0 

.3. .4 .3 

13.4 15.5 15.0 

4.6 4.3 3.7 

.5 .4 .5 

5.5 6.1 6.4 

6.2 6.2 6.5 

3.2 3.7 3.6 

.3 .5 .4 

__ .6 __ .6 -----:§ 

40.9 41.9 40.9 

$63.2 $67.4 $66.0 
SUMMARY OF ACCOUNTS AND LOANS RECEIVABLE 

DUE FROM THE PUBLIC . ;·· 

Total accounts receivable amounted to $63.S·billion in FY 1984/an increase of $6.1 billion from FY 1983. Total 

loans receivable amounted to $261.1 billion in FY 1984, an increase of $6.5 billion from FY 1983. Graphically depicted 

below are summaries by function of accounts and loans receivable data. 

Accounts Receivable 

<percent> 

All Other 

17.6% 

Total $63.5 billion 

Loans Receivable 

<percent> 

.14.9% 

14.6% 

., Total $261.1 billion 

. l!il!!IIHHII General Government Receivables 

Other 

1.3% 

commerce and 

Housing credit 

The table which follows supports the balance sheet receivables, "Accounts receivable" and "Loans receivable" 

which are shown net of allowances, taxes receivable and intragovernmental holdings. The information· in the table is 

based on data ~ubmitted by Federal ag_encies to the Treasury and p~blished annu~lly in the Treasury Bulletin. 

The Debt Collection Act of 1982 (31 U.S.C. 3719) requires the Director of the Office of Management and Budget 

(0MB), in consultation with the Secretary of the Treasury; and the Comptroller General of the United States, to 

establish regulations requiring each agency will! outstanding debts to prepare and transmit to 0MB and the Treasury a 

report which summarizes the status of accounts and loans receivable managed by each agency. These receivables 

result from a wide range of Federal activities including tax assessments; sale of Government services such as satellite 

lauru:;lilngs; sale of Government goods suc;h as natural resources from Federal lands; overpayments to people like 

annuitants; and various loan programs such as student and housing loans. The data in the reports will enable the 

Federal Government to improve collection activity. •' · 

40 ', .. 
Summary of Accounts and Loans Receivable 

Due from the Public as of September 30, 1984 and .1983 

(In bllllons) 

Accounts and Loans Receivable 

by Agency 

Accounts recelvable Loans receivable 

Legislative branch ..................................... . 

Executive branch 

Funds appropriated to the President .................... . 

Departments 

Agriculture ........................................ . 

Commerce ............ : ............................ . 

Defense ................................... : ...... . 

Education ........................................ . 

Energy ... : ................................ .' ...... . 

Health and Human Services ......................... . 

Housing and Urban Development .................... . 

Interior .. .' ........................................ . 

Justice ........................................... . 

Labor .- ........................................... . 

State ............................................. . 

Transportation ..................................... . 

Treasury ................................... -..... : .. 

Veterans Administration .............................. . 

Other independent agencies .......................... . 

Off-budget agencies ................................. . 

Gross receivables ................................. . 

Less taxes receivable, allowances and intragovernmental 

transfers ..................... : .................. . 

Net receivables due from the public .................. . 

1984 

$0.6 

6.6 

.7 

.7 

.6 

2.7 

.9 

.4 

10.4 

.1 

31.0 

1.0 

2.9 

~ 

63.5 

1983 

$0.3 

4.8 

.1 

.7· 

.5 

.8 

2.0 

.9 

.2 

.2 

13.8 

.2 

25.1 

.9 

'2.2 

__Q_ 

57.4 

Summary Reconciliation of Gross Accounts and Loans Receivable 

Due from the Public as of September 30, 1984 

Beginning balance, September 30, 1983 .......... . 

New receivables ........................... . 

Repayments and reclassifications ............ . 

Amounts written off ......................... . 

Ending balance, September 30, 1984 ............ : 

Accounts 

recelvable 

$56.8 

62.5 

(54.2) 

_{Lfil 

$63.5 

Percent of 

total 

89.5 

98.4 

(85.3) 

~ 

100.0 

1984 

$20.5 

20.0 

.9 

10.6 

.7 

14.0 

.5 

1.9 

3.3 

2.6 

29.8 

156.3 

261.1 

Loans 

receivable 

$254.8 

58.2 

(50.0) 

----11.:fil 

$261.1 

Summary Aging Schedule of Gross Accounts and Loans Receivable 

Due from the Public as of September 30, 1984 

Accounts Percent of Loans 

receivable total recelvable 

_Not delinquent ......................... : ....... . $26.3 ....11.A $13.3 

Delinquent 

1 "-30 days .................. · ............... . 7.5 11.7 .3 

31-90 days ................... · ............ . 5.2 8.1 :5 

91-180 days .............................. . 5.6 8.9 .7 

181-360 days ............................. . 6.7 10.6 1.1 

Over 360 days ............................. . 12.2 ~ ____§.&_ 

Total delinquent .......................... . 37.2 58.6 9.1 

Noncurrent receivables ......................... . 238.7 

Total gross receivables ........................ . $63.5 100.0 $261.1 

41 

· 1983 

. $20.1 

25.6 

,,,-:-9 

10.3 

.7 

13.5 

.5 

.• 

.6 

3.4 

2.6 

29.2 

147:2 

254.6 

Percent of 

total 

97.6 

22.3 

(19.2) 

__iD 

100.0 

Percent of 

total 

__§_J_ 

.1 

.2 

.3 

.4 

___g&_ 

3.5 

_lli.. 

100.0 
., 

Summary of Accounts .and-Loans Receivable 

Due from the Public as of September 30, ·19~4 and 1983-Continued 

(In bll_lions) 

,,r ., .. · Accounts and Loans Receivable 

by Function 

Administration of justice ......................... . 

Agriculture .............................. : ..... . 

Commerce and housing credit .......... : ........ . 

Community and regional development ............ . 

Education, training, employment, and social 

services ..................................... . 

Energy ......................................... . 

General government 1 .•.••••••••..••.•.••..••.••. 

General purpose fiscal assistance ................ . 

General science, space, and technology .......... . 

•Health ....................................... .. 

Income security ................................ . 

International affairs ............................. . 

National defense ............................... . 

Natural resources and environment .............. . 

Social security and medicare .................... . 

Transportation ................................. . 

Veterans benefits and services .................. . 

Total ................... : .................. . 

Administration of justice ......................... . 

Agriculture .................................... . 

Commerce and housing credit ................... . 

Community and regional development ............ . 

Education, training, employment, and social 

services ..................................... . 

Energy ........................................ . 

General government 2 ••••••••••••••••••••.••••••. 

General purpose fiscal assistance ................ . 

General science, space, and technology· .......... . 

Health ........................................ . 

Income security ................................ . 

International affairs ............................. . 

National defense ............................... . 

Natural resources and environment .............. . 

Social security and medicare .................... . 

Transportation ................................. . 

Veterans benefits and services .................. . 

Total ...................................... . 

Accounts 

receivable 

$0.2 

5.6 

2.0 

.6 

1.1 

1.3 

35.5 

.2 

.3 

11.2 

1.6 

.7 

.5 

1.6 

.2 

__ .9 

$63.5 

Loans 

receivable 

$19.4 

16.5 

8.4 

10.6 

10.5 

148.2 

1.9 

.6 

1.3 

38.0 

.4 

1984 

1984 

Percent of 

total 

0.3 

8.9 

3.1 

.9 

1.8 

2.0 

56.0 

.3 

.0 

.4 

17.6 

2.5 

1.1 

.8 

2.6 

.3 

1.4 

100.0 

Percent of 

total 

7.4 

6.3 

3.2 

4.1 

4.0 

56.8 

.7 

.2 

.5 

14.6 

.0 

.2 

1.0 

1.0 

100.0 

Accounts 

receivable 

$0.3 

3.8 

1.6 

6 

.9 

1.3 

29.3 

.2 

.1 

.2 

14.3 

1.2 

.7 

.4 

1.3 

.3 

__ .9 

$57.4 

Loans 

receivable 

$25.1 

16.4 

9.0 

10.2 

10.1 

139.6 

1.8 

.6 

.2 

37.0 

.3 

1.5 

~ 

$254.6 

1983 

1983 

1 Includes accounts receivable from Internal Revenue Service of $30.1 billion in 1984 and $24.1 billion in 1983. 

~ 2 Includes loans receivable from the Federal Financing Bank of $144.8 billion in 1984 and $136.1 billion in 1983. 

* Less than $50 million. 

42 

.. 

Percent of 

total 

0.5 

6.6 

2.8 

1.0 

1.6 

2.2 

51.0 

.4 

.2 

.4 

24.9 

2.1 

1.2 

.7 

2.3 

. .5 

1.6 

100.0 

Percent ot' 

total 

0.0 

9.9 

6.4 

3:5 

4.0 

4.0 

54.8 

.7 

.2 

.1 

14.6 

.0 

.1 

.6 

1.1 

100.0 
I ,i,' 

RECONCILIATION OF ACCRUAL ·OPERATl~G RESULTS TO tHE CASH BASIS BUDGET 

The following table reflects the separate bases used to prepare each (accrual vs. cash). The Consolidated 

Financial Statements are prepared on the accrual basis and, accordingly, are more comprehensive because they 

recognize revenues and expenses in the accounting period to which they relate rather than when the receipts or 

outlays take place. The Budget of the United States Government reflects only cash received or spent. 

The items shown as additions represent additional,expenses not recognized under the budget concept, while 

deductions are adjustments for redistribution items. 

Reconciliation of Accrual Operating Results to 

the Cash Basis Budget 

as of September 30, 1984 and 1983 

(In billions) 

Reported budget outlays over receipts (cash basis) ....................................... . 

Net expenses of off-budget agencies .................................... , ............. . 

Total budget deficit (cash basis) ........................................... , .-;-; .-........ . 

Add: 

Noncash provisions for retirement and disability benefits • ............................... . 

Depreciation .......................................... _. ........................... . 

Increase in contingent liabilities· for guarantee and insurance programs .................. . 

Deduct: : 

,;·; 

Capital outlays ...................................................................... . 

Net loan disbursements .............................................................. . 

Decrease in contingent liabilities for guarantee and insurance programs ..................... . 

Seigniorage ........................................................................ . 

Net effect on other accrual adjustments ................................................ . 

Curre_nt period results on accrual basis per consolidated statement of operations (expenses 

over revenues) ........................................................... -:• ... ... . 

43 

1984 ·1983 

$175.3 $195.3 

____!Q,Q_ ___Jll_ 

185.3 207.6 

60.9 79.9 

37.8 23.4 

1.1 

~ 103.3 

102.3 90.5 

6.3 15.3 

.6 

.5 .5 

(24.1) (29.6) 

~ 77.3 

$200.1 $233.6 
Federal Facts and Figures 

Gross national product 

Current dollars ................................................. . 

Per capita ........... · ........................................ . 

1972 dollars ......... · .......................................... . 

Per capita ................................................... . 

Population (Includes Armed Forces) ................ : ............. . 

Consumer Price Index 

All items (1967= 100) ........................................... . 

Purchasing power (1967 = $1.00) ................................. . 

Employment 

Total labor force ................................................. . 

Total employed ....................... , ...... · ................... . 

Federal employment 

Military ...................................................... . 

Civilian ..... : ................................................ . 

Federal employment as a percent of total U.S. employment ......... . 

Federal debt 

Gross debt .................................................... . 

1972 dollars ................................................. . 

Held by public (current dollars) ................................... . 

Percent of GNP ................................................ . 

Per capita ..................................................... . 

1972 dollars ................................................... . 

Interest on the Federal debt (current dollars) ...................... . 

Per capita ..................................................... . 

Percent of GNP ................................................ . 

Percent of total Federal expenses ................................ . 

1972 dollars ................................................... . 

Total Federal expenses (accrual) 

Current dollars ................................................. . 

Percent of GNP ................................................ . 

Per capita ..................................................... . 

Personal Income 

Current dollars ................................................. . 

Percent of GNP .............................................. . 

Per capita ................................................... . 

1972 dollars ................................................... . 

Percent of GNP .............................................. . 

Per capita ............................................. , ..... . 

Total Income taxes paid for adjusted Income levels 

Under $6,000 .................................................. . 

Number of taxpayers ............................................ . 

$6,000-$9,999 ................................................. . 

Number of taxpayers ............................................ . 

$10,000-$15,999 ............................................... . 

Number of taxpayers ............................................ . 

$16,000-$24,999 ............................................... . 

Number of taxpayers ............................................ . 

$25,000-$49,999 .................. : ............................ . 

Number of taxpayers ............................................ . 

$50,000-$99,999 ............................................... . 

Number of taxpayers ....................... · ..................... . 

$100,000-$999,999 ............................................. . 

Number of taxpayers ............................................ . 

$1 million and over ............................................. . 

Number of taxpayers ............................................ . 

Federal participation In domestic credit markets 

Total funds advanced in U.S. credit markets (nonfinancial sectors) ..... 

Total funds advanced under Federal guidance (direct and guaranteed 

loans) ....................................................... . 

Federal participation rate ........................................ . 

Total funds raised in U.S. credit markets (nonfinancial sectors) ....... . 

Total funds raised under Federal guidance (includes Federal 

borrowing from the public, guaranteed borrowing, and sponsored 

agency borrowing) ............................................ . 

Federal participation rate ........................................ . 

N/A Not available. 

;' 

Unit of 

measure 1984 

billions 

dollars 

billions 

dollars 

millions 

millions 

millions 

millions 

millions 

percent 

billions 

billions 

billions 

percent 

dollars 

billions 

billions 

dollars 

percent 

percent 

billions 

billions 

percent 

dollars 

billions· 

percent 

dollars 

billions 

percent 

dollars 

billions 

thousands 

billions 

thousands 

billions 

thousands 

billions 

thousands 

billions 

thousands 

billions 

thousands 

billions 

thousands 

billions 

thousands 

billions 

billions 

percent 

billions 

billions 

percent 

3,695 

15,572 

1,645 

6,934 

237.3 

314.5 

.32 

113.7 

105.2 

1.7 

2.8 

4.0 

1,576.7 

702.1 

1,299.5 

35.2 

5,477 

578.7 

129.0 

543.8 

3.5 

12.52 

57.4 

1,030.6 

27.9 

4,343 

3,068 

83.0 

12,929 

1,366 

83.0 

5,756 

NIA 

N/A 

672.6 

79.6 

11.8 

672.6 

246.5 

36.6 

1983 1982 

3,362 3,088 

14,327 13,288 

1,553 1,481 

6,620 6,373 

234.7 232.4 

301.8 293.3 

.33 .34 

112.4 110.9 

101.9 99.7 

2.2 2.2 

2.8 2.7 

4.4 4.4 

1,381.9 1,146.9 

638.5 550.0 

1,130.4 918.8 

33.6 29.8 

4,819 3,953 

522.4 440.7 

108.4 97.7 

461.8 420.4 

3.2 3.2 

10.9 10.96 

50.1 46.9 

994.0 900.2 

· 29.6 34.3 

4,235 3,873 

2,782 2,597 

82.7 84.1 

11,853 11,176 

1,285 1,246 

82.7 84.1 

5,476 5,361 

1.0 1.2 

9,347 6,844 

5.1 5.8 

13,128 10,629 

13.2 18.9 

16,242 16,194 

36.9· 39.6 

17,160 16,547 

107.0 112.3 

22,916 21,972 

53.9 50.5 

4,418 3,733 

45.1 41.8 

818 726 

10.2 6.9 

11 8 

497.5 408.7 

86.5 87.6 

17.4 21.4 

497.5 408.7 

281.0 199.7 

56.5 48.9 

44 * U.S. GOVERNMENT PRINTING OFFICE: 1985 - 461-851 - 814/35243